TXU's Plan To Invest In New Power Generation Assets Does Not Affect Rating

April 21, 2006--Standard & Poor's Ratings

Services said today that TXU Corp.'s (BBB-/Stable/--) announcement on April 20, 2006 that it intends to invest up to $10 billion in new power generation assets does not immediately affect the rating on the company or its subsidiaries. Standard & Poor's will analyze the company's plans and strategies surrounding these new assets and how the assets fit into the company's current business profile to determine the effect on the company's creditworthiness. Key items to be analyzed are the method chosen to finance the new assets and their cash-flow volatility. TXU's management is still exploring the financing alternatives for the assets, which include a traditional balance-sheet approach and project financing individual assets. The company's management is also still determining how the new assets will operate within the Texas market and whether or not they will hedge all or a portion of the assets output.